Westminster City Council has warned that London’s status as a globally recognised shopping destination is under threat from planning regulations enabling the conversion of commercial space into residential use.

The council said that rules that stop the local authority preventing the change of use of buildings on the grounds that the change would undermine an area’s character – so-called permitted development rights (PDRs) – will have a ‘devastating effect on the country’s premier shopping and business district.’

The city council had called for the majority of Westminster’s section of the Central Activity Zone (CAZ), including The West End, Knightsbridge, Soho, Victoria, Paddington, and Pimlico, to be made a special case, under an Article 4 Direction of the Town and Country Planning Act, on the grounds of their national and international importance.

However, the Secretary of State for the Department of Levelling Up, Housing and Communities (DLUHC) turned down proposals insisting that the area suggested by the local authority was too large and should cover ‘as small a geographic area as possible’.

Cllr Geoff Barraclough, Westminster City Council’s cabinet member for Planning and Economic Development, said he was disappointed the council’s original proposal was not accepted.

‘It’s disappointing that the Government’s obsession with deregulation has blinded it to the importance of keeping the West End thriving. Central London is unique in that it is not only a major tourist destination and premier shopping district, but the heart of the nation’s business community as well,’ he said.

‘A quarter of FTSE 100 companies are based in Westminster, and with its transport infrastructure which allows access from all corners of the capital and its 9m people and many millions beyond, it is little wonder that businesses want to be based here. These workers, combined with tourism, help drive our hospitality sector, providing jobs and revenue which acts as an engine-room for the country’s economy. We should not risk this success by allowing a developer free-for-all in which property owners compete to convert offices and shops into poor quality flats.

‘We do want to encourage more people to live in the West End but this needs to be carefully planned. Unsuitable accommodation in former office space, that does not include any genuinely affordable housing is not the solution.

‘The city works because of the concentration of this unique combination of businesses, hospitality, and shops, once they are gone, you will never get them back.

‘We are committed to doing everything we can to protect the unique mix of commercial used in the West End and will keep this closely under review so that central London can continue to flourish.’

In response, a Department for Levelling Up, Housing and Communities spokesperson said: ‘These comments by Westminster are disappointing given their original proposal was not compliant with national planning policy and these changes were what the council themselves proposed to the Government.

‘Following constructive engagement with the Government, the council proposed this more targeted, evidence-based approach and we accepted those revised, compliant proposals in full.

‘As the council themselves accepted, this strikes the right balance between protecting core commercial centres, including Oxford Street, Regent Street, Soho and Covent Garden, and supporting the supply of much-needed homes in the capital.’